Filing for Bankruptcy in Maryland

Talk to a Bankruptcy Lawyer

Bankruptcy is a system of federal law, so the process to file for
Chapter 7 bankruptcy or to file
for Chapter 13 bankruptcy is nearly identical in every state, including Maryland.
However, Maryland plays an important role, especially in setting property
exemptions, which determine what property you get to keep (if you file for
Chapter 7) and how much you have to repay your creditors (if you file for
Chapter 13). There are also important state-specific resources available to
you.

Maryland Credit Counseling

Before you file for Chapter 7 or Chapter 13 bankruptcy in Maryland,
you will have to get credit counseling from an agency approved by the United
States Trustee’s Office. Here’s a list
of agencies that have been approved to provide this counseling in Maryland.

Where to File for Bankruptcy

Maryland has federal bankruptcy courts in Baltimore, Greenbelt,
and Salisbury. You can find information on filing for bankruptcy, as well as
forms, and local rules, at the Maryland bankruptcy
court’s website.

Some states allow bankruptcy filers to choose between the state’s
exemptions and a federal exemption list, but Maryland doesn’t offer this choice.

Bankruptcy filers in Maryland may exempt up to $22,975 in home
equity; spouses who file together may double this amount, for a total homestead
exemption of $45,950. Maryland filers may also claim a total exemption of
$1,000 for clothing, household goods and furnishings, appliances, books, and
pets. Here is a detailed list
of Maryland exemptions.

The Means Test

When you file for bankruptcy, you must compare your income to the
median state income in Maryland for a household of your size. If your income is
less than the Maryland median, you will be eligible to file for Chapter 7 and,
if you choose to file for Chapter 13, you can use a three-year repayment plan
(rather than five years).

The median income in Maryland for a four-person household
is around $101,000; these figures change frequently. You can find the most recent amounts on the website of the U.S. Trustee at www.justice.gov/ust. Click on “Bankruptcy Reform,” and then “Means Testing Information.” Or go directly to the Census Bureau table here.

Maryland Debtor Education

After you file for bankruptcy but before you receive your
discharge, you must take a debtor
education course. Like the mandatory credit counseling you must take before
filing your forms, you must receive debtor education from an agency approved by
the U.S. Trustee’s Office. Here is a list
of agencies in Maryland that are currently approved to provide this counseling.